Owning a home is everyone’s dream. Taking it home for the first time is even more special. The decision was not just about money. This is an important phase of life. But first-time homebuyers often make a few mistakes. These mistakes make their experience difficult. If you are also a first time homeowner this blog is for you. We are sharing with you 10 mistakes that you should avoid. Each error is accompanied by its solution.

Miscalculating the budget

Many people think that they will be able to buy a house with their salary. But they do not estimate their total expenses. First time home buyers mistakes often include underestimating costs. Buying a home isn’t just about the down payment. EMI also has to be paid every month. There is also the cost of insurance, taxes and maintenance. How to calculate EMI? It is difficult to borrow without understanding all these costs.

What to do:
Analyze your salary and expenses in detail. Use an online loan calculator. Consult a financial advisor. EMI should be only 25-30% of monthly income. The remaining amount is necessary for normal life.

Underpaying

When the down payment decreases, the loan amount increases. This means more interest. PMI is also applicable in some cases. PMI means paying extra every month. Just because you paid less. A lower payment increases the total cost. The loan period has been extended. You are under a lot of pressure.

What to do:
Try to make a down payment of up to 20%. If this is not possible, it should be reduced to at least 10-15%. Giving more means borrowing less. This reduces both interest and stress.

Getting rates from only one lender

Taking out a mortgage is a long commitment. If you only deal with one lender, you may be missing out on a good deal. Each lender has different terms. Interest rates, processing fees, and payment options vary. It is a mistake to say that the lender is taking the last month.

What to do:
Get rate quotes from at least 3 lenders. Compare which deal is best for you. By getting this deal you can save money every month.

Home Inspection and Survey

Most of the people are happy to see the wall and paint of the house. No technical glitch was observed in running it. Buying a house without an inspection is a huge mistake. First time home buyers mistakes often include skipping proper inspections. You may find cracks, leaks, wiring problems or plumbing problems in your bathroom. This repair is expensive. Sometimes a poor person’s house becomes unsafe.

What to do:
Hire a professional home inspector. Read the inspection report carefully. If there is a problem, ask the seller for a repair or price reduction.

You research the neighborhood

Mere housekeeping was not enough. Its area should also be safe and convenient. Some people just look at the house. He doesn’t care how many doors schools, hospitals and markets have. There is no concern for the security of the area. All these issues will come up later. Couldn’t even enjoy what I wanted to do at home.

What to do:
Visit the area both day and night. Review crime rates, public transport and traffic. Also take feedback from online tools and locals.

Making emotional decisions

Taking home is emotionally rewarding. But it was not right to take decisions only by heart. Most people make a decision after seeing an empty house. First time home buyers mistakes often happen when emotions override planning. They don’t think the house is within budget or in line with future goals. Such decisions turn into regrets.

What to do:
Compare each home. Look at your future plans. Consider the location, resale value, and condition of the home. Decisions are made from the mind.

Don’t use buyer assistance programs

What programs do government and financial institutions offer? These are especially for first-time home buyers.I don’t know about the programs I’m logged into. And he did not consult anyone. With this face they are missing out on easy options.

What to do:
Check your state’s housing websites. Consult a certified real estate agent. You may be eligible for a grant, tax break, or subsidized loan.

 Ignore my credit score

A credit score reflects your financial creditworthiness. A lower credit score means higher interest and loan delays. Why don’t you check your score before taking out a loan? They make late payments or take unnecessary loans.

What to do:
Check your credit report before 6 months. Bills will be paid on time. Keep credit card balances low. A score of 700 or above is preferable.

Hidden costs or estimated costs

What expenses are there even after buying a home? Not only loans and EMIs, but also:

• Property tax
  
• Home insurance
  
• Repairs and maintenance
  
• Utility bills
  
• HOA fees (if applicable)
  

They all seem small, but overall they are a lot.

What to do:
These hidden costs have already been estimated. Monthly and annual budgets are prepared. Create an emergency fund to handle any unexpected expenses.

Do not keep documents ready

What documents are required in the loan process? If you’re not ready, you have the option to delay or cancel the deal. Who is logging in and creating files at the last minute? This leads to stress and mistakes.

What to do:
Have all your documents ready. Such as salary slips, bank statements, tax returns and identity proofs. Organize them in a folder and make digital copies as well. Buying a home for the first time is an important step in life. First time home buyers mistakes often come from poor preparation. If you avoid these 10 mistakes, your experience can be smooth and successful. Research, plan and seek professional advice. Your home is not just property it is your destiny. This decision has been taken from society.

Frequently Asked Questions 

Q1: Can I buy a house with a down payment?
Yes, but you can get a higher loan if you pay less. You also have to pay PMI, which is an additional expense every month.

Q2: How does credit score affect?
The higher your credit score, the easier it is to get a loan. Lower interest rates are available for higher credit scores. A low score can also lead to loan rejection.

Q3: Is a home inspection required for every home?
Even new homes can have construction defects. First time home buyers mistakes include assuming new homes are always perfect. The inspection determines whether the wiring, plumbing and structure are adequate.

Q4: How to apply for government or buyer assistance programs?
Check your state or city housing authority’s website. Real estate agents can also guide you through these programs.

Q5: What are the additional costs after buying a home?
Property taxes, home insurance, maintenance, utility bills, and if in a community, HOA fees also apply.

Q6: What documents are required before buying a house?
Keep salary slips, bank statements, tax returns, copies of identity cards and address proof handy. All this is necessary for the loan.

Q7: Can I buy a house without an agent?
Yes, but with the help of an agent, the paperwork, negotiation and legal process becomes easier for you. Especially if you are a first time buyer.

Question 8: Which credit report should be checked before taking out a loan?
Absolutely. If there are any errors on the credit report, it should be checked before using it. First time home buyers mistakes often include ignoring credit report issues. The report should be accurate so that the loan process goes smoothly